Economic Collapse

This is another nail in the coffin for the US Dollar.

27 October 2009 - TEHRAN - The Iranian Oil Bourse was inaugurated on Monday in the Persian Gulf island of Kish as a venue to export oil and petrochemical products.

National Petrochemical Company’s Managing Director Adel Nejad-Salim said in the opening ceremony that all petrochemical products will be gradually offered on the market, IRNA news agency reported.

The oil bourse is intended as an exchange market for petroleum, gas, and petrochemicals in various currencies, primarily the euro and Iranian rial, and a basket of other major currencies.

On February 4, 2008 the Iranian Cabinet approved the creation of the oil bourse in two stages - first for crude and second for oil byproducts transactions.

Iran, having the world’s second largest gas reserves and third largest oil reserves, is trying to play a more active role in oil and petrochemical transactions in international markets.
© Tehran Times 2009

Related to this I advice you to read the now classic article “The Proposed Iranian Oil Bourse” by economist Krassimir Petrov and also read my post about what this means and also the historic background to all this. Many things are happening pushing the once all mighty dollar further down the tube. Again, this is very bullish for gold.

On the 14:th I wrote in response to a BBC report on Putins visit to Beijing, China:

“Yes, Medvedev and Jintao is moving away from the US dollar and will settle this 20-year-deal in their own currencies. You should also move away from fiat paper of the west and move into your own currency: gold. Be your own banker, as a friend of mine says.”

On the same day the Russian news outlet “RIA Novosti” quoted Putin on the topic:

“Yesterday, energy companies, in particular Gazprom, raised the question of using the national currency. We are ready to examine the possibility of selling energy resources for rubles, but our Chinese partners need rubles for that. We are also ready to sell for yuans,” Putin said.

Now that the Fed is buying almost all the Treasury bills since the demand from foreign buyers is almost gone, the only thing that keeps the US dollar from going down the tube is the petrodollar: Currently buyers of oil, natural gas and other commodities have to first buy US dollars to make their purchases. When these commodities are available in other currencies, the End of the Dollar is here.

Here’s an interesting TV-interview with Max Keiser on the latest developments in The demise of the dollar released by The Independent that I’ve written about here at Mellgren.com. As I wrote earlier I believe the collapse of the US dollar will happen a lot faster than 2018 as The Independent suggests, and Max Keiser agrees on that as well:

Here’s a short radio interview with GATAs Bill Murphy on the latest developments in The demise of the dollar released by The Independent that I’ve written about here at Mellgren.com. Listen to Bill in your web browser or download this MP3-file.

Dear readers, interesting times to say the least. As stated in one of the most important articles in decades (discussed here on Mellgren.com), the denials from US media and officials are in, like clock-work:
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Dear readers. This might be the biggest financial news to hit the Internet since Bear Stearns and Lehman Brothers. I, and many other experts with far better understanding than I have, such as Catherine Austin Fitts and Krassimir Petrov, have been saying this for years: Oil will not be priced in US dollars for long. When the move away from the Petrodollar happens, the US Empire will fall. From The Independent:
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